Can I Direct Irs To Deposit All Or Part Of My Refund To Any Of My Accounts With Any Financial Institution
IRS will direct deposit refunds to any of your checking or savings accounts with any U.S. financial institution that accepts electronic deposits. However, you should verify that your financial institution accepts direct deposits for the type of account you want to direct your deposit to and verify the account and routing numbers.
Reminder: Your refund should only be deposited directly into accounts that are in your own name, your spouses name or both if its a joint account.
Get Your Check Ready For Deposit
Depositing a check online isnt exactly the same as depositing it at a branch or ATM. But you still have to sign the back of the check for the deposit to be valid. You also should make sure all the information on the front of the check is correct.
Depending on your bank account, you may also have to write something extra on the back to denote that its a mobile deposit. For example, you may have to add for mobile deposit or for remote deposit capture below your signature.
Also, make sure the check is legible. Your mobile device needs to be able to read the check via the camera when youre ready to deposit it.
How To Sign A Check Over To Someone Else
If you have a check and would like someone else to cash it for you, youll need to sign it over to them. This allows them to either deposit or cash the check.
Due to the risk of fraud, your bank may not want to cash the check, so its recommended you go to the bank with the person depositing the check and present your ID.
Banks often prefer to verify your signature before handing over your money to another person.
If you dont have a bank account, using a prepaid debit card can be a good solution.
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Frequently Asked Questions About Stimulus Payments
What is a government stimulus payment?
As part of the American Rescue Plan Act of 2021, the federal government is providing stimulus payments to eligible recipients.
How will I know if I qualify?
Please note: Eligibility criteria outlined in the American Rescue Plan Act of 2021 differs from prior rounds of stimulus payments. Wells Fargo does not have the ability to determine whether you qualify. Your eligibility is determined by the government. To learn more about eligibility and payment amounts, visit IRS.gov/coronavirus.
How will I receive my payment?
If youâre eligible to receive a payment, you will receive the funds in one of these ways:
- By prepaid card. Instead of receiving a paper check, some customers will receive a prepaid card in the mail. Customers are able to use this card like a debit card or transfer funds from their Economic Impact Payment card to their bank account from the Eipcard.com website, from the Money Network Mobile App, or by calling 1-800-240-8100.
Once the IRS begins to distribute payments, the IRS’s Get MY Payment tool will be updated to reflect direct deposit or mailed payment date. The IRS is expected to update the payment status regularly.
When will I receive my payment?
The U.S. Treasury has indicated that payments will be distributed in multiple phases and could take several weeks to distribute, so not everyone will receive payments at the same time.
You can check on the status of your stimulus payment using the IRSâs Get My Payment tool.
What Types Of Accounts Are Eligible To Receive My Refund Via Direct Deposit
You can direct your refund to any of your checking or savings accounts with a U.S. financial institution as long as your financial institution accepts direct deposits for that type of account and you provide valid routing and account numbers. Examples of savings accounts include: passbook savings, individual development accounts, individual retirement arrangements, health savings accounts, Archer MSAs, and Coverdell education savings accounts.
However, some financial institutions will accept direct deposits for some types of accounts, but not others. Contact your financial institution to ensure they will accept your direct deposit and verify your account and routing number.
IRS also encourages taxpayers and their preparers to ensure account and routing numbers are accurately entered on returns so your funds can be deposited as intended and remember that your refund should only be deposited directly into accounts that are in your own name, your spouses name or both if its a joint account.
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Review Mobile Check Deposit Limits
If you know that youre able to deposit a check through mobile banking, the next step is to determine whether there are any limits on deposits.
For example, some financial institutions impose limits on the number of checks you can deposit per day or per week. There may also be daily, weekly or monthly limits on the total dollar amount you can add to your bank account using mobile check deposit.
So, make sure you can deposit your check without going over those limits. For example, say youre married with two kids and you received a federal stimulus check for $3,400. If your banks mobile check deposit limit is $5,000 per day, you should be able to deposit the entire check online.
You can usually find out about limits if you read your bank accounts terms and conditions. You can also check your online banking website and look for a section on frequently asked questions. Sometimes this is a good place to start.
What if your check is outside mobile check deposit limits? In this case, youll need to find a work-around for depositing it into your bank account. With online bank accounts, for instance, you may have to deposit the money to a checking account at a brick-and-mortar bank, and then move it into your other account via an ACH transfer.
Alternatives To Signing Over A Check To Someone Else
While signing a check over to someone may be possible, its not the only option and may not be the ideal solution for your needs.
If you have an account in good standing with a bank or credit union, you may deposit the check in person, at an ATM or through a mobile banking app. There may be different timelines for how quickly you can access the funds, but therell be numerous ways to transfer the money to your recipient once the funds appear in your available balance. These alternative solutions may include ATM withdrawals, personal checks, ACH or wire transfers, or peer-to-peer apps. Before picking an option to transfer money, always check possible fees.
Unfortunately, most banks wont cash checks for folks without an account, and those that allow it may charge a fee to protect the institution from forgeries. You may also be able to cash your check in person through some retail stores like Walmart, Kmart or Kroger for a fee. Some states limit the fees a check-cashing store or other non-bank may charge to cash a check.
Once you have access to the funds, another option is to pay someone with a prepaid card, which will disclose the total fees upfront. If you buy a prepaid card in person, you can see a summary of the fees on the packaging.
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Before You Endorse A Check
In addition to personal hassles , erroneous check endorsements can have legal implications. Though not considered legal tender, checks are a form of negotiable instruments that serve as a promise to transfer money from one party to another .
A wrongly-endorsed check could spell legal trouble for the remitter/payee.
When it comes to the duty to accept an endorsement, banks and other financial institutions have a fair degree of latitude. To ensure that the accepting financial institution doesnt reject or dishonor your check, make sure you endorse it appropriately before you date and sign it.
Here are some pointers to note before you endorse the check for payment.
When Is My Stimulus Payment Coming
Please note that our member support agents do not have information on the status of Economic Impact Payments.
The majority of the stimulus deposits have been processed. If you havent gotten your payment yet, you will likely receive a check or debit card from the IRS, even if you received an electronic deposit last time. Please check the IRS website for more information. You can also find more information on our FAQs below.
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Visit The Issuing Bank
This won’t help with your stimulus check, but you can always visit the issuing bank, assuming there’s a branch near you. If you need to cash a paycheck or a check you received from someone else, many branches will readily cash it, even if you don’t bank with them. This is because they can verify that the account the check is drawn from has the necessary funds. But some banks don’t allow this and some may charge a fee for doing so. The bank may ask for a government-issued ID before it cashes the check to verify that you are the person it’s addressed to.
Most checks should list the issuing bank, but if you don’t see it, you can always try looking the bank up by its routing number online. This is the first number written on the bottom of the check. Once you know the bank, you can find the branch nearest you. If it’s an online bank, you may be out of luck as not all of them have branches.
Blank Endorsement For A Check
This is the least secure way to endorse a check, but its the most common. You do a blank endorsement by simply signing your name on the back of the check. Then, when youre at the bank, you tell the teller if you want to cash it or deposit it. People will also do a blank endorsement when theyre depositing a check through an ATM or using mobile deposit. If youre doing a blank endorsement, sign the check just before you deposit the check.
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What If Im Not Required To File Taxes
If you havent filed your taxes for 2019 or 2020 and werent planning to, you can still receive a third stimulus payment if youre eligible.
- If you receive Social Security or Railroad Retirement benefits, youll receive your Economic Impact Payment automatically without providing further information. However, if you have eligible dependents and did not provide this information to the IRS in connection with the first or second stimulus, you will not receive the supplemental $1,400-per-child payment as part of the third stimulus.
- Note that eligibility for supplemental payments for dependents has changed. If you have dependents over the age of 18 who did not qualify for the first or second stimulus, they may still qualify for the third. To claim a supplemental payment for which you qualify under the third stimulus, you will likely need to claim a Recovery Rebate Credit the next time you file federal taxes.
What If I Make A Mistake On My Return That Increases The Amount Of My Refund
If you split your refund among multiple accounts and the mistake results in a larger refund than you expected, IRS will add the difference to the last account you designated.
Example: Your return shows a refund of $300 and you ask IRS to split the refund among three accounts, depositing $100 to each account. Due to an error, your refund is increased by $150. IRS will adjust your direct deposits as follows:
You will receive a letter from IRS explaining any errors resulting in adjustments to your return, refund amount, and direct deposit. IRS recommends using electronic filing to avoid math errors and other common problems that can result in adjustments to your return and change the amount of your refund.
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Why Havent I Received My Stimulus Payment
If youre eligible for an economic impact payment, but havent gotten it yet, its likely that the IRS will send you a paper check or debit card. This is expected to start soon and continue throughout the month of January.
If you received the previous stimulus payment as a direct deposit and havent received a second stimulus payment, the IRS likely routed your payment to tax preparer companies instead of your account. These payments were rejected and returned to the IRS. If you were impacted, youll either receive a paper check or a debit card from the IRS. If you do not receive your payment in any form, then you can claim the Recovery Rebate Credit on your 2020 tax return.
To check the status of your payment, go to IRS.gov/eip and use the Get My Payment tool.
For more information check out the IRS stimulus FAQs.
Payment Sent To Wrong Account: Bank Account No Longer Active
If your stimulus payment has gone astray, it could be because you have changed banks since last filing a tax return either in 2018 or 2019.
Alternatively, in last years tax declaration or the previous years, you may have filed with help from a Tax Return Preparer, enrolled agents or certified public accountant and requested a refund anticipation loan or a refund anticipation check instead waiting to receive your tax rebate. Those payments may have been made into a temporary bank account.
It is also possible that you asked for your tax rebate in either 2018 or 2019 to be charged to a prepaid debit card instead of a direct deposit payment into your bank account, then stopped using the card which by now might have expired.
If any of the three cases mentioned above apply to you, then it is can be assumed that the bank account information which the Internal Revenue Service has on record for you is out of date. When sending out stimulus payments via direct deposit, the IRS will use the bank details given on your most recent tax return if you havent filed this years tax return yet, they will refer to the address on your tax return from the previous year .
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Depositing And Issuing Banks May Reject The Deposit
Keep in mind that both the issuing bank and receiving bank are involved in processing a check deposit.
Before you sign a check over to someone, they should go to their bank and speak to a teller asking about whether its allowed, and what process the bank requires to accept a check thats been signed over.
If the bank doesnt allow you to sign a check over to someone else, youll know not to waste time trying.
Even if the recipients bank says its alright, the issuing bank may block the transaction.
You should check with the issuing bank if possible, to make sure the transaction wont be blocked on its end.
What If I Make A Mistake On My Return That Decreases The Amount Of My Refund
If the mistake results in a smaller refund, IRS will use a bottom-up rule and deduct the difference from the amount you designated for the last account shown on Form 8888. If the difference exceeds the amount designated for the last account, IRS will deduct the remainder from the amount designated to the next account, etc.
Example: Your return shows a refund of $300 and you ask IRS to split your refund among three accounts with $100 to each account. Due to an error, your refund is decreased by $150. IRS will adjust your direct deposits as follows:
IRS will apply this same bottom-up rule to adjust direct deposits for refund offsets for unpaid federal taxes or if the Earned Income Tax Credit portion of your refund is withheld pending further review.
You will receive a letter from IRS explaining any errors resulting in adjustments to your return, your refund amount, and direct deposit.
IRS recommends using electronic filing to avoid math errors and other common problems that can result in adjustments to your return and change the amount of your refund.
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While Its Usually Possible To Sign Over A Check Youve Received To Someone Else It May Not Always Be Your Best Option For Paying Someone When You Owe Them Money
Not all banks will allow you to sign a check over to someone else. And banks that permit it will have specific rules youll have to follow. Before you decide to sign a check over to someone else, heres what you need to know about the process.
Can You Sign A Check Over To Someone Else To Deposit
When someone gives you a check, you first need to deposit the money at a bank or cash it so you have money to spend.
Sometimes you might not want to visit the bank, or might not be able to visit the bank to deposit or cash a check that you receive.
In that situation, you might want to try signing the check over to someone else so they can deposit it for you.You might also want to sign a check over to someone else if you received the check, but the money was intended for another person.
If you were the middleman for a large transaction, someone might write a check payable to you erroneously rather than to the person who is actually owed the money.
While its possible to sign a check over to someone else, it will not always work. It should be something you try only if you really need to.
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